Review the case-Krispy Kreme Doughnuts, Inc.
Respond to the following:
1. Explain the dimensions of ethical leadership that did not exist in the Krispy Kreme case both on the part of company management and PwC.
2. Evaluate the corporate governance at Krispy Kreme during its financial statement fraud including management's stewardship responsibility to owners.
3. Do you believe PwC violated its independence obligation in its relationship with Krispy Kreme and audit of its financial statements? What about other ethical requirements? Explain.
4. Using the Fraud Triangle, analyze the incentives, motivations, and/or pressures that existed and how management took advantage of its opportunities to commit the fraud.
Discussion Question: Describe the role of professional judgment in ethical leadership as it pertains to accountants and auditors. Identify reasons why there may be ethical leadership failures and explain why failed leadership occurs.